04 NCAC 02S .1006. GENERAL PROHIBITIONS

(a)  For the purposes of this Rule, the following definitions shall apply:

(1)           "Coupon" means a part of a retail permittee's advertisement that is redeemed by a purchaser to the retail permittee to obtain a discount at the time of sale;

(2)           "Loyalty card, discount card, or membership card" means a card that is issued by a retail permittee to customers that, upon presentation to the retail permittee, provides for the purchaser to receive a loyalty card, discount card, membership card, or coupon discount on a portion of the amount paid by the purchaser for off-premises beer or wine consumption sales at the time of sale; and

(3)           "Rebate" for a retail permitee, means a promise by the retail permittee to return a portion of the amount paid by the purchaser upon the condition the purchaser completes a rebate form and the purchaser meets the terms and conditions of the rebate form's requirements.

(b)  Advertising for an alcoholic beverage shall not include a coupon or an offer for a free alcoholic beverage. No person shall advertise by means of a coupon, a rebate or a permittee's loyalty card, discount card or membership card offering a discount off the purchase of a malt beverage or wine, except as provided in this section.  A combination of the use of a coupon, a rebate or a permittee's loyalty card, discount card or membership card shall not exceed a total of 25 percent of the advertised retail price of the item.  Permittees may advertise by means of a coupon, a rebate or a permittee's loyalty card, discount card or membership card under the following conditions:

(1)           A permittee who holds an on-premises or off-premises malt beverage or wine permit under G.S. 18B-1001(1) through (6) or a wine shop permit under G.S. 18B-1001(16) may advertise by means of a coupon or a rebate in the following circumstances:

(A)          The permittee may provide a coupon or a rebate for use by a customer when purchasing a malt beverage or wine sold at the permittee's retail location for off-premises consumption;

(B)          The permittee may require a customer to use the permittee's loyalty card, discount card or membership card with the use of a coupon or rebate when purchasing a malt beverage or wine sold at the permittee's retail location for off-premises consumption;

(C)          No coupons or rebates shall be honored for the purchase of alcohol for any individual below the legal age for purchase of alcohol;

(D)          A coupon or rebate shall not provide a discount exceeding 25 percent of the advertised retail price of the item;

(E)           A permittee shall not advertise or distribute coupons or rebates in a publication produced for or by a higher education institution; and

(F)           In any advertisement displaying a discount coupon or rebate, the permittee shall include the following statement on or about the discount coupon or rebate in a similar font to the discount coupon or rebate,  "Drink Responsibly – Be 21;" and

(2)           A permittee who holds an on-premises or off-premises malt beverage or wine permit under G.S. 18B-1001(1) through (6) or a wine shop permit under G.S. 18B-1001(16) may advertise discounts, coupons and rebates with the requirement of the use of the permittee's loyalty card, discount card or membership card in the following circumstances;

(A)          The permittee shall require customers to present a loyalty card, discount card or membership card to receive the advertised loyalty card, discount card or  membership card discount when purchasing a malt beverage or wine sold at the permittee's retail location for off-premises consumption;

(B)          No loyalty card, discount card or membership card shall be honored for the purchase of alcohol for any individual below the legal age for purchase of alcohol;

(C)          A loyalty card, discount card or membership card shall not provide a discount exceeding 25 percent of the advertised retail price of the item;

(D)          A permittee shall not advertise permittee loyalty card, discount card or membership card discounts in a publication produced for or by a higher education institution; and

(E)           In any advertisement displaying a permittee loyalty card, discount card or  membership card discount, the permittee shall include the following statement on or about the discount coupon or rebate in a similar font to the discount, "Drink Responsibly – Be 21."

Direct or indirect cooperation shall not occur between a retailer and an industry member in either marketing, redemption or funding of coupons, rebates or loyalty card, discount card or membership card discounts under this Rule.  Participation of an industry member in the use of coupons, rebates or loyalty card, discount card or membership card discounts is a violation of G.S. 18B-1116(a)(3).

(c)  No industry member or retailer shall advertise alcoholic beverages in any programs for events or activities in connection with any elementary or secondary schools; nor shall any alcoholic beverages advertising be connected with these events when broadcast over radio or television.

(d)  No industry member or retailer is permitted to advertise alcoholic beverages by use of sound trucks.

(e)  No industry member or retailer shall advertise spirituous liquor upon the picture screen of any theater.

(f)  Except as otherwise provided in these Rules, no industry member or retailer shall promote an alcoholic beverage product by giving prizes, premiums or merchandise to individuals for which any purchase of alcoholic beverages is required or based on the return of empty containers unless all containers of like products are accepted and considered on an equal basis with the product sold by the promoter.

(g)  No on‑premise permittee or his agent shall advertise any drink promotion prohibited by 04 NCAC 02S .0232.  This Paragraph includes a ban on all advertisements of "2 for 1," "buy 1 get 1 free," "buy 1 get another for a_______(nickle, penny, etc.)," and any other similar statement indicating that a patron must buy more than one drink.

 

History Note:        Authority G.S. 18B-100; 18B‑105(b); 18B-1116(a)(3);

Eff. January 1, 1982;

Amended Eff. January 1, 2011; July 1, 1992; August 1, 1985; May 1, 1984.